Final Project: Distribution

“Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company’s supply chain. This supply chain consists of “upstream” and “downstream” partners. Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Marketers, however, have traditionally focused on the “downstream” side of the supply chain—on the marketing channels (or distribution channels) that look toward the customer. Downstream marketing channel partners, such as wholesalers and retailers, form a vital connection between the firm and its customers.” (Marketing: An Introduction Armstrong/Kotler Chapter 10 pg. 311) In order to distribute Cherry Poppers correctly and in a successful way in order to reach our target customers, we must build strong professional relationships with our suppliers. Marketers focus mostly on “downstream” partners, when in fact “upstream” partners are what give birth to our product and without them we are hopeless. So it is of utter importance to eradicate this gap so it becomes non-existent and thus avoiding further obstacles preventing Cherry Poppers from reaching our key demographic. “Between intensive and exclusive distribution lies selective distribution—the use of more than one, but fewer than all, of the intermediaries who are willing to carry a company’s products. Most television, furniture, and home appliance brands are distributed in this manner. For example, Whirlpool and General Electric sell their major appliances through dealer networks and selected large retailers." (Marketing: An Introduction Armstrong/Kotler Chapter 10 pg. 324) By approaching distribution through selective distribution communicates to our customers that our product is exclusively selected. This is important because it creates a sense of exclusivity to our customers thus increasing the need for buying it. "By using selective distribution, they can develop good working relationships with selected channel members and expect a better-than-average selling effort. Selective distribution gives producers good market coverage with more control and less cost than does intensive distribution.” (Marketing: An Introduction Armstrong/Kotler Chapter 10 pg. 324)